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General Science and Engineering Indicators
R&D Investment Patterns
R&D Investment by Selected Country
Academic R&D Investment by Selected Country and S&E Field
U.S. R&D Investment by Selected Source of Support
U.S. R&D Investment by Selected Performing Sector
U.S. R&D Investment by Federal Budget Function
U.S. Federal Research Investment by Selected Agency and S&E Field
S&E Workforce Development
Knowledge Output

Selected Education Indicators
High School Completion Patterns
High School Teachers
Higher Education Enrollments

Selected Global Marketplace Indicators
Competitiveness

Glossary
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The federal government funds the majority of basic research in the United States, while industry funds the majority of development.

Why is this indicator important?

  • The outcomes and benefits of R&D investments depend not only on the amount of funding but also on the sources of support and the type of R&D those sources support.

Key Observations

  • Industry funds about 83% of development, while the federal government funds about 16%.
  • The federal government funds about 59% of basic research, while industry funds 17% (SEI 2008 Appendix Table 4-10).

Related Discussion

  • Industry surpassed the federal government as the largest source of R&D funding overall in 1980.
  • Following an economic slowdown in the United States in 2001 and 2002, the business activities of many R&D-performing firms were curtailed.
  • The federal share of R&D funding first fell below 50% in 1979 and dropped to a low of 25% in 2000. Reflecting increased research spending on health, defense and counterterrorism, the federal share of R&D funding is projected at 28% of the R&D funding total in 2006.